For the third quarter of fiscal 2014, Celestica had sales of $1.4 billion — below expectations, as well as three per cent lower year over year.

But at $0.26, the company’s net income beat the consensus call by $0.02 a share.

And except for communications, which fell five per cent quarter over quarter, all of Celestica’s business segments fared as expected.

Communications took a hit from softening demand in Japan, lack of exposure to China, as well as the wind-down of telecom build outs in North America.

But the company’s diversified business posted a two per cent rise quarter-over-quarter, fueled by healthy demand from the industrial, aerospace and defence markets.

And although Celestica’s storage division remained flat quarter-over-quarter, results actually rose 18 per cent, thanks to the ramp-up of new programs.

Overall, the company saw operating margins rise 40 basis points quarter-over-quarter — helped by cost-cutting, a better product mix, as well as gains on foreign exchange.

Celestica itself is expected to continue to face challenges in the marketplace. As a result, it’s pegged its sales forecasts below what analysts had hoped for.

The company sees fourth quarter revenue ranging between $1.4 and $1.5 billion; the consensus crew had forecast $1.5 billion.

And although the Street had pegged fourth quarter net income at $0.26 a share, Celestica sees EPS ranging between $0.21 and $0.27.

Based in Toronto, Celestica is one of the biggest suppliers of electronic manufacturing services in the world. Besides communications, the company’s main business segments include servers, storage, telecom, consumer electronics, industrial, aerospace and defense.